How to Choose a Copy Trader (Beginner Guide)
Choosing the right copy trader is more important than choosing the right exchange. This guide shows you exactly what to look for, what to avoid, and how to manage risk when copy trading crypto.
Start with drawdown, not profit
High returns mean nothing if a trader regularly loses 50% of their account. Always check maximum drawdown first.
- Under 25% drawdown = good
- Over 40% drawdown = dangerous
Look for consistency
A steady equity curve is better than occasional huge spikes. You want traders who grind profits over time.
Avoid extreme leverage
Traders using very high leverage can look profitable but usually blow up eventually.
- Prefer 3x–10x leverage
- Avoid 50x–200x strategies
Check trading history length
Choose traders with at least 3–6 months of history.
Follow multiple traders
Diversification reduces the chance one bad trader wipes your account.
Use small allocations
Never allocate your entire balance to one trader.
Best platforms to find copy traders
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Educational purposes only. Not financial advice.
Educational purposes only. Not financial advice.